Auburn referendum calls for raising borrowing, spending caps

Besides electing two city councilors Tuesday, Auburn residents will also decide on whether the city should be empowered to spend and borrow millions of dollars more for public utility projects.

A referendum asks for voter approval to amend the city charter in two ways, according to Auburn Corporation Counsel John Rossi:

One, to allow the city to increase the amount of money it can spend on energy-related projects from $2.5 million to $15 million. Secondly, to permit the city to increase the amount of money it can borrow on those projects from $2.5 million to $10 million.

The increases are needed, officials say, because construction costs for public utility projects continue to soar. For example, the city hoped to build a digester that would convert landfill sludge into low-cost electricity that the city planned to use and sell. However, the project has stalled because its estimated $9 million-plus cost far exceeds the city’s spending and borrowing limits.

“We just can’t get into big projects,’’ City Manager Mark Palesh said Monday.

Palesh said the energy projects under consideration will generate money for the city, which he said is a good thing for Auburn residents.

In July, city councilors approved a local law to increase the spending and borrowing caps, subject to voter approval in today’s general election.

In the race for two city council seats, incumbents Bill Graney, a Democrat, and Republican Matthew C. Smith are running against Democrat Jack Hardy, who is seeking political office for the first time.

City councilors are prohibited by law from advocating for or against the city charter referendum.

“Basically our hands are tied as to what we can or can’t say,’’ Mayor Michael Quill said.

If history has any bearing the referendum could be doomed.

Two years ago, city voters overwhelming defeated a referendum that called for eliminating the civil service commission. Residents have also rejected proposals to switch city government to a strong mayor-city council form of governance in recent years in recent years.